Global Net Lease Completes $569 Million of Dispositions Through Third Quarter of 2024
Global Net Lease (NYSE: GNL) has made significant progress on its 2024 strategic disposition plan, closing $569 million of dispositions through Q3 2024. Including the pipeline, total dispositions reach $870 million at a 7.2% cash cap rate on 5.3 years of weighted average lease term. The dispositions include $111 million of vacant assets, eliminating their negative impact on net operating income.
CEO Michael Weil emphasized that this initiative is important for reducing Net Debt to Adjusted EBITDA and lowering the cost of capital. By using net sale proceeds to reduce outstanding debt, GNL aims to enhance its financial flexibility and position itself for long-term growth. The company has furnished a slide detailing the progress of its 2024 strategic disposition plan in a Current Report on Form 8-K filed with the SEC.
Global Net Lease (NYSE: GNL) ha fatto notevoli progressi nel suo piano strategico di dismissione per il 2024, chiudendo 569 milioni di dollari di dismissioni entro il terzo trimestre del 2024. Compreso il pipeline, il totale delle dismissioni raggiunge 870 milioni di dollari con un tasso di capitalizzazione in contante del 7,2% su un termine di locazione medio ponderato di 5,3 anni. Le dismissioni includono 111 milioni di dollari di beni vacanti, eliminando il loro impatto negativo sul reddito operativo netto.
Il CEO Michael Weil ha sottolineato che questa iniziativa è importante per ridurre il debito netto rispetto all'EBITDA rettificato e abbassare il costo del capitale. Utilizzando i proventi delle vendite nette per ridurre il debito in essere, GNL mira ad aumentare la sua flessibilità finanziaria e posizionarsi per una crescita a lungo termine. L'azienda ha fornito una slide che dettaglia i progressi del suo piano strategico di dismissione per il 2024 in un rapporto corrente su modulo 8-K depositato presso la SEC.
Global Net Lease (NYSE: GNL) ha logrado avances significativos en su plan de disposición estratégica para 2024, cerrando 569 millones de dólares en disposiciones hasta el tercer trimestre de 2024. Incluyendo el pipeline, el total de disposiciones alcanza 870 millones de dólares a un tasa de capitalización en efectivo del 7.2% sobre un plazo de arrendamiento promedio ponderado de 5.3 años. Las disposiciones incluyen 111 millones de dólares en activos vacantes, eliminando su impacto negativo en los ingresos operativos netos.
El CEO Michael Weil enfatizó que esta iniciativa es importante para reducir la Deuda Neta respecto al EBITDA Ajustado y disminuir el costo del capital. Al utilizar los ingresos netos de la venta para reducir la deuda pendiente, GNL busca mejorar su flexibilidad financiera y posicionarse para un crecimiento a largo plazo. La compañía ha proporcionado una diapositiva detallando el progreso de su plan de disposición estratégica para 2024 en un Informe Actual en el formulario 8-K presentado a la SEC.
Global Net Lease (NYSE: GNL)는 2024년 전략적 처분 계획에서 상당한 진전을 이루었으며, 2024년 3분기까지 5억 6900만 달러의 처분을 완료했습니다. 파이프라인을 포함하면 총 처분액은 8억 7000만 달러에 달하며, 7.2%의 현금 수익률을 기록하고 있습니다. 평균 임대 기간은 5.3년입니다. 처분에는 1억 1100만 달러의 공실 자산이 포함되어 있어, 이들 자산의 순영업소득에 미치는 부정적인 영향을 제거합니다.
CEO인 마이클 웨일은 이 이니셔티브가 조정된 EBITDA에 대한 순부채를 줄이고 자본 비용을 낮추는 데 중요하다고 강조했습니다. 순판매 수익을 사용하여 미지급 부채를 줄임으로써 GNL은 재정적 유연성을 높이고 장기적으로 성장할 수 있는 기반을 마련하는 것을 목표로 하고 있습니다. 회사는 SEC에 제출된 8-K 양식의 현재 보고서에서 2024년 전략적 처분 계획의 진전을 상세히 설명하는 슬라이드를 제공했습니다.
Global Net Lease (NYSE: GNL) a réalisé des progrès significatifs dans son plan stratégique de cession pour 2024, clôturant 569 millions de dollars de cessions d'ici le troisième trimestre 2024. En incluant le pipeline, le total des cessions atteint 870 millions de dollars avec un taux de capitalisation en espèces de 7,2% sur une durée moyenne de bail pondérée de 5,3 ans. Les cessions incluent 111 millions de dollars d'actifs vacants, éliminant leur impact négatif sur le revenu net d'exploitation.
Le PDG Michael Weil a souligné que cette initiative est importante pour réduire la dette nette par rapport à l'EBITDA ajusté et pour diminuer le coût du capital. En utilisant le produit net des ventes pour réduire la dette en cours, GNL vise à améliorer sa flexibilité financière et à se positionner pour une croissance à long terme. L'entreprise a fourni une diapositive détaillant les progrès de son plan stratégique de cession pour 2024 dans un rapport actuel déposé au SEC sur le formulaire 8-K.
Global Net Lease (NYSE: GNL) hat bedeutende Fortschritte bei seinem strategischen Dispositionsplan für 2024 gemacht und bis zum dritten Quartal 2024 569 Millionen Dollar an Dispositionen abgeschlossen. Inklusive der Pipeline beläuft sich die Gesamtsumme der Dispositionen auf 870 Millionen Dollar bei einer Bar-Cap-Rate von 7,2% über eine gewichtete durchschnittliche Mietdauer von 5,3 Jahren. Die Dispositionen umfassen 111 Millionen Dollar an ungenutzten Vermögenswerten, wodurch deren negative Auswirkungen auf das Nettobetriebsergebnis beseitigt werden.
CEO Michael Weil betonte, dass diese Initiative wichtig sei, um die Nettoverschuldung im Verhältnis zum bereinigten EBITDA zu reduzieren und die Kapitalkosten zu senken. Durch die Verwendung der Nettoerlöse aus dem Verkauf zur Reduzierung der ausstehenden Schulden zielt GNL darauf ab, seine finanzielle Flexibilität zu erhöhen und sich für ein langfristiges Wachstum zu positionieren. Das Unternehmen stellte eine Folie zur Verfügung, die den Fortschritt seines strategischen Dispositionsplans für 2024 in einem aktuellen Bericht auf Formular 8-K darlegt, der bei der SEC eingereicht wurde.
- Closed $569 million of dispositions through Q3 2024
- Total dispositions, including pipeline, reach $870 million
- Achieved 7.2% cash cap rate on dispositions
- Eliminated $111 million of vacant assets, improving net operating income
- Using net sale proceeds to reduce outstanding debt
- Disposition of assets may impact future revenue potential
Insights
The announcement of
Key points to consider:
- The dispositions are occurring at a
7.2% cash cap rate, which is favorable and indicates the quality of the assets being sold. - The weighted average lease term of 5.3 years on disposed properties suggests a balanced approach to portfolio management.
- Notably,
$111 million of vacant assets were sold, which should positively impact net operating income by eliminating non-performing properties. - The primary objectives of reducing Net Debt to Adjusted EBITDA and lowering the cost of capital are important for improving GNL's financial health and flexibility.
This strategic disposition plan, if executed successfully, could lead to a stronger balance sheet and potentially improved investor confidence. However, investors should monitor how effectively the company redeploys capital and manages its remaining portfolio to ensure long-term growth and stability.
Global Net Lease's disposition strategy reveals a calculated approach to portfolio optimization. The
The focus on reducing debt is particularly important in the current high-interest-rate environment. By using proceeds to pay down debt, GNL is taking a prudent approach to risk management. This could lead to:
- Improved interest coverage ratios
- Enhanced financial flexibility for future acquisitions or capital improvements
- Potential for better credit ratings, which could further reduce borrowing costs
The disposal of vacant assets is a smart move, as it eliminates the drag on NOI and reduces carrying costs. However, investors should keep an eye on the impact on overall portfolio occupancy and the potential for future revenue growth. The success of this strategy will ultimately depend on GNL's ability to reinvest in high-quality, accretive assets that align with their long-term growth objectives.
Including Pipeline, Dispositions Total
NEW YORK, Oct. 09, 2024 (GLOBE NEWSWIRE) -- Global Net Lease, Inc. (NYSE: GNL) (“GNL” or the “Company”) today announced continued progress on its 2024 strategic disposition plan. Through Q3 2024, GNL has closed nearly
“We are pleased with the continued momentum of our 2024 strategic disposition plan, having closed nearly
GNL has furnished a slide detailing the progress of its 2024 strategic disposition plan with a Current Report on Form 8-K with the Securities and Exchange Commission on the date hereof.
About Global Net Lease, Inc.
Global Net Lease, Inc. is a publicly traded real estate investment trust listed on the NYSE, which focuses on acquiring and managing a global portfolio of income producing net lease assets across the United States, and Western and Northern Europe. Additional information about GNL can be found on its website at www.globalnetlease.com.
Important Notice
The statements in this press release that are not historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. The words such as "may," "will," "seeks," "anticipates," "believes," "expects," "estimates," "projects," “potential,” “predicts,” "plans," "intends," “would,” “could,” "should" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include the risks associated with realization of the anticipated benefits of the merger with The Necessity Retail REIT, Inc. and the internalization of the Company’s property management and advisory functions; that any potential future acquisition or disposition by the Company is subject to market conditions and capital availability and may not be identified or completed on favorable terms, or at all. Some of the risks and uncertainties, although not all risks and uncertainties, that could cause the Company’s actual results to differ materially from those presented in its forward-looking statements are set forth in the Risk Factors and “Quantitative and Qualitative Disclosures about Market Risk” sections in the Company’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and all of its other filings with the U.S. Securities and Exchange Commission, as such risks, uncertainties and other important factors may be updated from time to time in the Company’s subsequent reports. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.
Contacts:
Investor Relations
Email: investorrelations@globalnetlease.com
Phone: (332) 265-2020
Footnotes:
1 Disposition data as of September 30, 2024, includes transactions that are either closed or a pipeline of transactions under agreement or letter of intent, and assumes purchase agreements and letters of intent lead to closing based on their contemplated terms, which cannot be assured.
FAQ
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